Legislation to Block a 'Netflix' Tax Is Shelved Amid Opposition
A Southern California assemblyman on Monday shelved legislation that would have blocked cities from taxing streaming video services such as Netflix and Hulu.
April 25, 2017 at 07:34 AM
4 minute read
A Southern California assemblyman on Monday shelved legislation that would have blocked cities from taxing streaming video services such as Netflix and Hulu.
Assemblyman Sebastian Ridley-Thomas, D-Los Angeles, said he wants more time to work with the bill's critics, including the cable industry and local government agencies. By designating the bill AB 252 “for interim study” he could revive the legislation next year.
No city in California taxes streaming services. But many are studying the possibility, especially as consumers increasingly drop cable—a service that is subject to utility tax schemes—for untaxed online video streaming services such. Utility taxes generate about $2 billion annually for 157 cities and four counties, according to the California Local Government Finance Almanac.
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